The Richmond Fed has released its Fifth District Surveys of manufacturing and service sector activity and the outlook for both is rather bleak. (The Fed’s Fifth District covers the Mid-Atlantic region, including D.C., Maryland and Virginia.) Output is falling, as are employment and wages. But what’s showing signs of growth? Inflation.
From the manufacturing report, we get this somber news:
District manufacturers reported that raw materials prices increased at an average annual rate of 4.16 percent in August — up somewhat from their 3.41 forecast in July. Finished goods prices rose at a 1.46 percent pace — also somewhat above July’s reading of 1.18 percent.
Looking forward, respondents expected that the prices they pay will advance at a 4.54 percent pace, somewhat higher than July’s reading of 4.35 percent. Additionally, contacts looked for finished goods prices to increase at a 3.35 percent annual rate, also slightly above last month’s expected rate of 2.97 percent.
[Continue reading Norman Leahy’s post at The Score.]
Norman Leahy blogs at The Score. The Local Blog Network is a group of bloggers from around the D.C. region who have agreed to make regular contributions to All Opinions Are Local.